GST Registration Procedure

GST registration takes six to ten working days, assuming all documents are filed properly.

Yes, you can register for GST online. It is still possible, however, to avoid common errors by seeking professional help.

There is no fee for GST registration. It is free of cost through the GST portal.

The process of physical verification of address for GST registration includes:

• Notification: You will be notified if physical verification is required.
• Visit by Officer: A GST officer will visit the premises to verify the address and business activity.
• Report Submission: The officer will submit a report confirming the address and business activities. Ensure that the business premises and relevant documents are accessible during the visit.

No, there is no fee for GST registration. It is free of cost through the GST portal.

GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit number assigned to each GST-registered business. It is essential for all GST-related transactions and compliance.

The process of physical verification of address for GST registration includes:

• Notification: You will be notified if physical verification is required.
• Visit by Officer: A GST officer will visit the premises to verify the address and business activity.
• Report Submission: The officer will submit a report confirming the address and business activities. Ensure that the business premises and relevant documents are accessible during the visit.

Yes, foreign businesses can register for GST in India if they supply goods or services to India. The registration process is similar to that for Indian businesses.

Exports are not subject to GST. Since GST is a consumption-based tax, exports are not taxed as they are not consumed in India. But return filing is mandatory.

Without GST registration, a person cannot collect GST from his customers nor claim an input tax credit for the GST he has paid.

• Agriculturalist: one who engages in agriculture
• A person who exclusively supplies goods/services that are not subject to tax or wholly exempt from tax
• Courts or tribunals established under the law may provide services
• Service, including cremation, burial, or transport of a deceased
• Sales under Schedule 5 (ii)(b) and sales of buildings
• A claim that is actionable, but not a lottery, betting, or gambling claim
• Those who do not meet the threshold exemption limit

To calculate turnover, the aggregate should be considered. An aggregate turnover is the sum of all taxable supplies excluding inward supplies subject to reverse charge, including exempt supplies, exports, and interstate supplies of the same PAN. When calculating aggregate turnover, CGST, SGST, UTGST, IGST, and cess should be excluded.

1. Late Fees:
   • GSTR-3B and GSTR-1 Returns:
     • Nil Returns: ₹20 per day of delay, up to a maximum of ₹500 per return.
     • Other Returns:
       • Turnover up to ₹1.5 crore: ₹50 per day, up to ₹2,000 per return.
       • Turnover between ₹1.5 crore and ₹5 crore: ₹50 per day, up to ₹5,000 per return.
       • Turnover above ₹5 crore: ₹50 per day, up to ₹10,000 per return.
   • GSTR-4 (Composition Scheme):
     • Nil Returns: ₹250 per day, up to ₹500 per return.
     • Other Returns: ₹1,000 per day, up to ₹2,000 per return.
2. Interest on Late Payment of Tax:

   If the GST liability is not paid by the due date, interest is charged at 18% per annum on the outstanding tax amount.

3. Penalty for Non-Compliance:

   In addition to late fees and interest, a general penalty of up to ₹5,000 may be imposed for non-compliance with GST provisions.

• When goods are delivered, the earliest of the following shall apply:
  • Date of invoice issuance by the supplier or;
  • The last date by which the invoice must be issued, as per the prescribed period;
  • Date when a supplier enters a payment in their books;
  • Date when the payment is credited to their bank account
• The time of supply of services shall be the earliest of the following:
  • Case:1 Invoices issued within the stipulated time frame
    • Date of invoice issuance by the supplier or;
    • Date on which the supplier enters a payment in their books of account or;
    • Date of crediting the payment to his bank account
  • Case:2 Where an invoice is not issued within the prescribed time frame
    • The date the service is rendered;
    • The date on which the supplier enters a payment into their accounting books;
    • Date of crediting the funds to their account
  • The time of supply of goods or services under reverse charge shall be the earlier of:
    • Date of receipt of goods (This is only in connection with the supply of goods and not services);
    • Date of entry in the books of account of the receiver;
    • 30 days after the date of invoice issued by the supplier. (In case of service supply, the date immediately following 60 days from the date of invoice issued will be used.)

Common issues faced during GST return filing include:

• Invoice Mismatches: Discrepancies between supplier and recipient invoices.
• Technical Glitches: Issues with the GST portal, leading to delays or errors in submission.
• Data Entry Errors: Incorrect entry of details such as HSN codes, invoice numbers, and amounts.
• Late Fees and Penalties:Charges incurred for late filing or non-compliance.
• Reconciliation Challenges: Difficulties in matching input tax credit with supplier filings.

GST is calculated as a percentage of the value of goods or services supplied. The calculation formula is: GST Amount=Value of Supply×GST Rate. For example, if the value of goods is ₹1,000 and the GST rate is 18%, the GST amount is: GST Amount=1,000×0.18=₹1800

There are four primary GST slabs in India:

• 1%: Applicable on Affordable housing, under-construction residential properties, which is reduced from 5% if the property is affordable (price below ₹45 lakh and size up to 60 square meters in metro cities*).
• 3%: Applicable to gold, silver, and platinum. Gold is also subject to customs duty upon import.
• 5%: Applicable to essential goods and services.
• 12%: Applicable to standard goods and services.
• 18%: Applicable to most goods and services.
• 28%: Applicable to luxury and sin goods.

Additionally, certain goods and services are taxed at special rates:

• 0%: Essential items like unprocessed food, books, and healthcare services.
• Special Rates: Some items like gold and precious stones have specific rates.

No, you cannot claim input tax credit (ITC) for goods or services used for personal purposes. ITC is only available for business-related expenses. The GST law specifies that ITC can be claimed only if the goods or services are used for business purposes.

No, personal assets should not be shown as business assets in your Income Tax Return (ITR). Only assets that are used for business purposes should be declared in the ITR. Personal assets, if incorrectly shown as business assets, can lead to complications during tax assessments.